QUESTIONS 79 THROUGH 90 RELATE TO EQUITY INVESTMENTS

81. - MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM MORNING 2012
MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM MORNING 2012
81. An investor gathered the following data in order to estimate the value of the company's preferred stock: Par value of preferred stock offered at a 6% dividend rate $100Company's sustainable growth rate 5%Yield on comparable preferred stock issues 11.5%Investor's marginal tax rate 30%The value of the company's preferred stock is closest to: A. $52.17. B. $74.53. C. $96.92.